Wednesday, 28 September 2011

Business Administration-Classical Theories (Cont)

This blog is a continuation of the blog from last week.  This week we will look at the theory Bureaucracy and the Human Relations Approach.  The theory of Bureaucracy was developed by Max Weber. 


Bureaucracy




Bureaucracy is mainly where organisations develop excessive rules which in some cases end up delaying the processing of information or the delivery of goods or services to the customer/client.  What are the characteristics of bureaucracy?

With Scientific Management, the focus was on production and
efficiency. Bureaucracy is the emphasis on the process rather
than the person.  


The organisation is deemed to be very hierarchical in nature. Tasks are allocated as official duties to
employees.   Employment is by way of educational qualifications (i.e. certificate, diploma etc) and there is a
tendency to stay with the organisation for the duration of your working life.  Employees are not encouraged
to get to know their clients/customers as is the practice in the majority of profit making organisations.
Employees use a set of rules and regulations to ensure that the same decision is reached no matter who deals
with the client or customer.

As with any other theory there are criticisms associated with bureaucracy.  The one major criticism of
bureaucracy is that employees become dependent on rules and regulations so over  a period of time
initiative may be stifled.

Human Relations Approach

Elton Mayo was the main theorist behind the human relations Human relations theory identified that
employees worker hardest approach.  For the first time there was a focus on the employee
rather than on production or the organisation itself.  Mayo conducted a number of experiments which
were as follows:
1.       The Illumination experiments
2.       The relay assembly test room
3.       The interviewing programme
4.       The bank wiring observation room


Elton Mayo discouvered that employees worker hardest when they were been monitored by
their supervisors.  For the first time the concept of employee groups was investigated in detail.
Mayo focused on norms within groups and the impact ofnorms on production in the workplace

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